While blockchain technology has seen incredible growth across industries in recent years, Bitcoin is not its only innovation. There are other breakthrough products that rely on the blockchain which paved the way for Web 3.0.
A social token is a prime example of a product that is empowering online communities by using blockchain. Together with NFT tokens, social tokens can transform the creator economy.
This article will explore more about a social token, its working process, its importance in business, and ways to launch one.
What Is a Social Token?
Social tokens refer to a method of digital ownership, through which content creators, social influencers, and even business brands can monetize their services or experiences. Also known as personal tokens, creator coins, or community tokens, these blockchain-based decentralized tokens function as a contract that content creators sell to people with product ownership or special access.
Consequently, this ownership turns into an asset that one can resell, and its value might increase. The value of a social token depends on the growth of its community and shared owners. Currently, most social tokens belong to a proof-of-concept stage. However, the aim is to fuel the content creator economy in a whole new way.
Social tokens have the potential to create more rewarding and user-friendlier ecosystems compared to the existing models based on advertising and subscription.
The followings are the types of Social Tokens:
- Personal Tokens: Individuals create this social token to sell in exchange for their creative content or service.
- Community Tokens: These tokens cater to the social community members.
Working Process and Examples of Social Tokens
To understand how social tokens work, take a look at the following example:
If you are a budding business or talented content creator, selling your products or content to the public might be difficult. However, if you can group some like-minded followers who are interested in your content, you can directly offer them relevant services or content in the form of social tokens.
To do so, you can launch your own social token and share it with your loyal and dedicated followers to exchange benefits. As your followers purchase the tokens, they get a pre-defined level of ownership of the content or product, which they can access in a new ecosystem.
If the ecosystem can generate higher demand for the product, the token value might increase over time. You can also say that these tokens function like company stocks, but there are some differences.
Here, unlike in the stock market, the token creator can decide who can own these tokens and what will be the services for each token value. Moreover, followers who own the social token may have voting rights to influence the content schedules, access to private content, and other exclusive features.
Here are some examples of social tokens or coins that became popular in recent times:
1. KSK Honda Coin ($KSK)
Japanese soccer player Keisuke Honda created a personal coin or token named KSK Honda Coin. He is the first person to use the brand coin provided by Rally. By buying this token, anyone from his global fan community will get access to his life as an entrepreneur and soccer player. The facilities include private chats, exclusive video updates, and recognition via special social posts.
2. TILT Coin ($TILT)
The TILT is a platform for content entrepreneurs that came up with its own coin, named TILT coin. The cryptocurrency used a decentralized network called The Rally. These social token owners can avail of discounts and rewards as a member of the TILT community. With the growth of its community, the platform plans to build its own economy with this coin.
3. Friends With Benefits ($FWB)
Trevor McFedries created this social token named Friends With Benefits for its members of a private discord server of the same name. While it has additional perks, this social token will let you become a part of this exclusive community of thinkers and creators.
4. Gen.G Strike Coin ($GGSC)
Gen.G Strike Coin is the official cryptocurrency of Gen.G Esports. With this token, fans can engage with a community and enjoy rewards, including private chats, voting rights, merch pre-sales, and getting responses to suggestions.
Why Does Your Business Need a Social Token?
As more organizations are opting for social tokens, there is no reason for you to shy away from it. Here are some common reasons for choosing a social token for your business.
1. Reward Loyal Customers
Social tokens could be a surprisingly new way to reward your faithful customers. Like popular businesses such as airlines, banks, hotels, and online shopping platforms, you can also create a tailored loyalty business framework using the tokens.
People owning your social tokens can redeem additional perks or services based on token balances. They will also get a sense of ownership of the service catalog that belongs to your business.
2. Use as a Marketing Tool
Businesses can penetrate the market like never before using social tokens. These tokens let you instantly engage with your customers and help you make them feel special.
Besides enjoying word-of-mouth marketing from your loyal followers, you can grow your brand by increasing its value with new people wanting to invest in it.
3. Ensure Genuine Ownership
The social token is developed based on blockchain technology, which means there is no chance of fraudulent transactions as far as token ownership is concerned. So, businesses can develop a separate ecosystem around these tokens where only the consumers genuinely interested in the product can participate in the transaction.
As a result, you will get a higher chance of making money out of your products or services by serving them to an exclusive group of interested clientele.
4. Attract Investors
Promising entrepreneurs and new business brands can utilize the social token ecosystem from which investors can buy what they want. Owing to blockchain technology, you can explicitly enforce the value of each token.
Businesses can also predefine the basic rules such as what investors can own, how and to what extent investors can exercise their rights—and embed them within the tokens. Should any dispute occur, you will not need any external agency to settle it. The reason is the autonomous contract enforcement that prevents any fraudulent activities.
5. Seamlessly Sale Assets
With social tokens, businesses can tokenize their tangible assets or physical products into digital avatars. Later, they can trade the assets among their loyal consumers who belong to their ecosystem.
This process does not involve consumers having to spend hours or days doing paperwork, verification, and other procedures manually before getting ownership of their favorite products. As this system makes getting the process of physical assets effortless, more people will become interested in owning them.
How to Launch a Social Token
Probably due to the complexity of the social tokens, no platform is yet to offer self-service to create social tokens. However, some platforms, such as Roll and Rally.io, assist you in minting social tokens. Follow these steps if you want to launch your social token:
- 1. First of all, create your profile on the preferred platform and apply to launch the social token.
- 2. Now, add a name to your social token. It could be anything—you can get naming inspiration from your name or your community.
- 3. Finally, create a plan for launching the token. You should utilize social platforms to announce the token and influence others to purchase it.
Additionally, you can try out the following techniques to spread the news:
- 1. Offer community benefits for token owners, such as creating private Discord channels or Telegram groups.
- 2. Arrange events to give out tokens to your loyal followers.
- 3. Add the social token to exchange which will let people trade it with other tokens.
Ethora Engine for Social Tokens
Ethora engine is the ideal mobile app engine for social tokenized communities. It is based on React Native and supports both iOS and Android devices. Its core app programming consists of asset tokenization (ERC-20, ERC-721, and ERC-1155), distributed ledger, social messaging, crypto wallet, and secure log-in.
Your community can easily manage its own social economy or tokenomics since apps made from the Ethora engine (GitHub) are easy to use. Also, you and your community members do not need multiple apps and websites to access messages, posts, comments, and token balances.
Additionally, Ethora ensures that your community is fully secured through state-of-the-art protocols like social media sign-on (Google, Facebook, and Apple), personalized login IDs and passwords, mobile phone OTP verification, and Two-Factor Authentication (2FA).
Community members can personalize their own accounts using custom profile pictures, names, business details, profile bio, and so on. Each user can conveniently share tokens and other content through QR codes and links.
Furthermore, you get the complete power of blockchain and crypto coins in one small app. Moreover, always stay connected with the community and engage in development activities through real-time chat, messaging, chat rooms, and chatbots.
As evident from the above discussion, social tokens come with immense potential to change how businesses or creators monetize their products. While this system lets you build a separate decentralized ecosystem to serve genuine customers, you should have in-depth knowledge and business insights before stepping into the social token space.
You can gear up your social token launch projects by hiring an expert team from Dappros. Our Ethora engine is the perfect tool for personalized social token management on Android or iOS mobile phones.